Step-like recovery for US stocks says Abate

The US stock market will move sideways before it moves up, says PSigma American Growth manager James ...

The US stock market will move sideways before it moves up, says PSigma American Growth manager James Abate. Abate says he maintains the view the S&P 500 will be up in excess of 20% for the year but believes the move from the lows of March will not be in a smooth fashion but step-like in their convexity and volatile. "Package delivery company UPS, held in the fund, expressed a view that the US economy was bottoming but not yet improving as excess capacity in most industries remained," says Abate. "In other words, the quickest and most efficacious cost-cutting and restructuring that we ha...